Union Budget 2018 would play a crucial role in determining the growth trajectory of the industry and the economy at the same time. To put a cap on inflation and ensure a balanced economy, my Budget expectation is that the finance minister would look at reining in fiscal deficit below 3.2 per cent. I hope that the Budget will have a greater focus on growth-oriented measures than populist schemes.
To facilitate industrial growth and promote ‘Make in India’, there need to be reforms that would improve the quality of infrastructure and logistics, such as wider roads, modernisation of ports, railways and airports.
To make the business scenario more conducive, it is important that the rationalisation of corporation tax continues in line with the pre-defined road map.
There should be reforms to prioritise increasing farmers’ incomes in the country for productive agricultural growth. To build a globally competitive manufacturing sector in the country, investment in ‘Skill India’ is also imperative. Higher education and training quality need enhanced focus in Finance Minister Arun Jaitley’s Budget reforms.
To promote growth of the auto industry, the Narendra Modi government should aim at more long-term policies so as to lower the effect of Budget tinkering and bring long-term stability. Considering the critical issue of environmental pollution, we hope the government will relax tax rates in favour of clean and green technologies, such as strong hybrids similar to pre-GST era.
The author is vice-chairman & joint venture partner, Toyota Kirloskar Motors Pvt Ltd